The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances:$ 90,000$ 60,000CashLiabilitiesNoncash assets300,000Henry,capitalIsaac, capitalJacobs, capital80,000110,000140,000Total$390,000Total$390,000Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of2:4:4.What amount of cash was available for safe payments, based on the above information?Multiple Choice$30,000.$85,000.O $25,000.$35,000.O $40,00o.

The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: $ 90,000 $ 60,000 80,000 110,000 Cash Liabilities Noncash assets 300,000 Henry,capital Isaac, capital Jacobs, capital 140,000 Total $390,000 $390,000 Total Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. What amount of cash was available for safe payments, based on the above information? Multiple Choice $30,000. $85,000. $25,000. $35,000. $40,000.

The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: $ 90,000 $ 60,000 80,000 110,000 Cash Liabilities Noncash assets 300,000 Henry,capital Isaac, capital Jacobs, capital 140,000 Total $390,000 $390,000 Total Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. What amount of cash was available for safe payments, based on the above information? Multiple Choice $30,000. $85,000. $25,000. $35,000. $40,000.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 5CE

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The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:Cash $ 100,000 Noncash assets 210,000 Total $ 310,000 Liabilities 40,000 Keaton, capital 90,000 lewis, capital 60,000 Meador, capital 120,000 total 310,000 Keaton, Lewis, and Meador share profits and losses in a ratio of2:4:4. Assuming noncash assets were sold for $60,000 and liquidation expenses inthe amount of $10,000 were incurred, how much will each partner receive in the liquidation? Keaton Lewis MeadorA) $40,000 $26,667 $ 53,333B) $24,000 $48,000 $ 48,000C) $56,667 $ 0 $ 53,333D) $ 0 $ 0 $120,000E) $36,000 $12,000 $ 72,000
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 61,000 Liabilities $ 55,000 Noncash assets 329,000 Drysdale, loan 42,500 Drysdale, capital (50%) 107,500 Koufax, capital (30%) 97,500 Marichal, capital (20%) 87,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $21,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $99,000 are sold for $72,500. How is the available cash to be divided?
Slick, Tony and Sam partnership began the process of liquidation with the following account balances: Cash 16,000 Non-cash assets 434,000 Liabilities 150,000 Slick, Capital (30%) 80,000 Tony, Capital (20%) 90,000 Sam, Capital (50%) 130,000 Liquidation expenses are expected to be P12,000. After the liquidation expenses of P12,000 had been paid and the non-cash assets sold, Sam had a deficit of P8,000. Assuming all partners are personally insolvent, how much is the final settlement to Tony? P24,000 P34,800 P36,000 P37,200
The Sheen, Jimmy and Carl partnership had the following balance sheet just before entering liquidation: Cash P10,000 Liabilities P130,000 Noncash assets 300,000 Sheen, capital 60,000 Jimmy, capital 40,000 Carl, capital 80,000 P310,000 P310,000 Sheen, Jimmy and Carl share profits and losses in a ratio of 2:4:4. Non-cash assets were sold for P180,000. Liquidation expenses were P10,000. Assume that Jimmy was personally insolvent and could not contribute any assets to the partnership, while Sheen and Carl were both solvent. What amount of cash would Sheen receive from the distribution of partnership assets?
The Bui, Clemente, Devian, and Toussaint partnership has terminated operations and is undergoing liquidation. Sales commissions and other liquidation expenses are expected to total $19,000. The partnership’s balance sheet prior to the commencement of liquidation is as follows: Cash $ 27,000 Liabilities $ 40,000 Noncash assets 254,000 Bui, capital (20%) 18,000 Clemente, capital (40%) 40,000 Devian, capital (20%) 48,000 Toussaint, capital (20%) 135,000 Total assets $ 281,000 Total liabilities and capital $ 281,000 Required: Prepare a predistribution plan for this partnership.
The balance sheet accounts of partners Pacman, Marquez and Mayweather before liquidation are the following: Cash, P360,000; Non-Cash Assets, P1,785,000; Liabilities, P1,000,000; Pacman, Capital (50%), P460,000; Marquez, Capital (30%), P365,000 and Mayweather, Capital (20%), P320,000. On the first month of liquidation, certain assets with a book value of P1,200,000 are sold for P960,000. Liquidation expenses of P30,000 are paid and additional expenses are anticipated. Liabilities are paid amounting to P362,000, and sufficient cash is retained to insure the payment to creditors before making payment to partners. In the first payment of cash to partners, Marquez received P107,000.
The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation: Cash $ 90,000 Liabilities $ 170,000 Noncash assets 300,000 Perry, capital 70,000 Quincy, capital 50,000 Renquist, capital 100,000 Total $ 390,000 Total $ 390,000 Included in Perry’s Capital account balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent. For what amount would the noncash assets need to be sold in order for Quincy to receive some cash from the liquidation? Multiple Choice A. Any amount in excess of $170,000. B. Any amount in excess of $190,000. C. Any amount in excess of $260,000. D. Any amount in excess of $280,000. E. Any amount in excess of $300,000.
The statement of Financial Position of JJJ Partnership, just before liquidation is as follows: ASSETS LIABILITIES & CAPITAL Cash 50,000 Liabilities 70,000 Other assets 140,000 Loan-Jan 20,000 Loan-Juls 10,000 Jan, Capital (50%) 30,000 Jun, Capital (30%) 50,000 Juls, Capital (20%) 30,000 Total Assets 200,000 Total Liabilities & Capital 200,000 If Jun received a total of P35,000 and liquidation expenses of 5,000 were paid, how much are the total proceeds on the sale of other assets?
The Al, Joyce and Rich partnership’s condensed financial position prior to liquidation of the partnership reflected the following balances:Assets Liabilities and CapitalCash P24,000 Liabilities P70,000Noncash assets 360,000 Loan payable to Al 30,000 Al, Capital (50) 90,000 Joyce, Capital (30) 140,000 Rich, Capital (20) 54,000 Assuming assets with a book value of P140,000 were sold for P100,000 and that all available cash was distributed, what amount should the remaining assets be sold in order for Joyce to receive a total of P158,000 cash after liquidation?
Partners E, F, and G who share profits and losses in the ratio of 2: 2: 1, respectively decided to liquidate. The condensed statement of financial position immediately prior to the liquidation shows the following: Cash P 400,000 Non-cash Assets 1,600,000 Liabilities 560,000 E, Loan 40,000 E, Capital 180,000 F, Capital 420,000 G, Capital 800,000 After paying liabilities to partnership creditors, cash of P830,000 is available for distribution to partners. Any…
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 70,000 Liabilities $ 38,000 Noncash assets 297,000 Frick, capital (60%) 180,000 Wilson, capital (20%) 48,000 Clarke, capital (20%) 101,000 Total assets $ 367,000 Total liabilities and capital $ 367,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $120,000 for $70,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $64,000. Paid actual liquidation expenses of $8,000 only. Distributed remaining cash to the…
A, B and C partnership had the following balances just before entering liquidation: Cash P10,000 Liabilities P130,000 Non-Cash Assets 300,000 A, Capital 60,000 B, Capital 40,000 C, Capital 80,000 Total P310,000 Total P310,000 A,B and C share profits and losses in the ratio of 3:4:3. Non cash assets were sold for P200,000. Liquidation expenses were P12,000. Assume that partner A was personally insolvent, B and C were both solvent and able to cover deficit in their capital accounts, if any. What amount of cash should be paid to partner A?